Producer prices dip by most in 41 months in March

South Korea’s producer prices fell at the sharpest pace in 41 months in March as oil prices declined and the local currency rose per the dollar, the central bank said Wednesday.The producer price index, a barometer of future consumer inflation, declined 2.4 percent in March from a year earlier, after declining 1.6 percent on-year in the previous month, according to the Bank of Korea.The data marked the sharpest fall since a 3.1 percent on-year decline tallied for October 2009.In March, oil price

April 17, 2013

Government debt from bond sales reaches W765.6tr

South Korea’s debt from bond issuance reached 765.6 trillion won ($687.8 billion) this month, raising concerns over increasing tax burdens down the road, data showed Wednesday.According to the data compiled by Korea Financial Investment Association, the combined amount of state bonds needing to be repaid by the South Korean government reached 436.1 trillion won on Monday, up 5.5 percent from the end of 2012.The amount of special bonds, which refer to debt sales floated by state-owned enterprises

April 17, 2013

Korean banks’ assets top 2,000 trillion won

The amount of assets held by South Korean banks surpassed the 2,000 trillion-won mark for the first time ever, while the figure for soured loans sank due to the regulator’s policy push in beefing up their financial soundness, data showed Wednesday. The amount of assets held by major local lenders totaled 2,031.3 trillion won ($1.82 trillion) at the end of December last year, up 62.3 trillion won from 1,969.0 trillion won the previous year, according to the data by the Financial Supervisory Servi

April 17, 2013

Watchdogs to announce measures to tackle stock price rigging

South Korean financial authorities plan to announce a set of measures to expand their surveillance of price rigging on the country's stock markets, sources said Wednesday.The Financial Services Commission is to hold a meeting with governmental authorities, including the Ministry of Justice, the National Tax Service, the Financial Supervisory Service (FSS), and the Korea Exchange, on Thursday to prepare countermeasures against price manipulations.Sources said the envisioned plan includes giving i

April 17, 2013

Seoul shares end tad higher on institutional buying

South Korean stocks closed slightly higher Wednesday in a volatile session as institutions' net buying of local equities offset losses from a foreign selloff, analysts said. The local currency fell against the U.S. dollar.In a choppy trading session, the benchmark Korea Composite Stock Price Index finished up 1.63 points, or 0.08 percent to 1,923.84. Trading volume was moderate at 408.1 million shares worth 5.29 trillion won (US$4.75 billion) with gainers outpacing losers 414 to 394."Institution

April 17, 2013

Seoul shares down 0.25 pct in late-morning trade

South Korean stocks turned lower late Wednesday morning after opening higher, as foreigners opted to dump local shares on a net selling mode, analysts said.   The Korea Composite Stock Price Index (KOSPI) fell 4.88 points to 1,917.33 as of 11:20 a.m.  Heavy industries and construction companies plunged, with Doosan Heavy Industries nosediving more than 10 percent and No. 1 Hyundai Engineering & Construction tumbling around 6 percent.   In contrast, utilities and telecom shares trended in positiv

April 17, 2013

Seoul shares open higher on extra budget

South Korean stocks got off to a strong start Wednesday, cheered by the government's supplementary budget unveiled a day before to boost the slowing economy, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) gained 8.19 points, or 0.43 percent to 1,930.40 in the first 15 minutes of trading. Tech and auto blue-chips drove up the main index, with market behemoth Samsung Electronics climbing 0.8 percent and Kia Motors, a smaller affiliate of Hyundai Motor, jumping 1.8 percent.

April 17, 2013

IMF revises down Korea’s growth at 2.8%

The International Monetary Fund revised down Korea’s gross domestic product growth forecast Tuesday to 2.8 percent this year, from the 3.2 percent it estimated earlier this year.But the IMF said it expected Korea’s economy to progress toward the trend of 4 percent next year, when it would grow 3.9 percent on the back of improvements in exports and increased private investment.The IMF’s revised economic outlook came after Deputy Prime Minister and Finance Minister Hyun Oh-seok told lawmakers that

April 16, 2013

Cabinet passes 20 trillion won stimulus package

The Cabinet on Tuesday approved the Finance Ministry’s stimulus package worth 20.3 trillion won ($17.9 billion) to revitalize the sluggish economy and boost exporters hit hard by the weaker yen caused by Japan’s monetary easing.The package highlights economic policymakers’ project to draw a supplementary budget totaling 17.3 trillion won, which marks the second-highest figure in history following the record of 28.4 trillion won in 2009 under the Lee Myung-bak administration.The other 3 trillion

April 16, 2013

Regulators vow crackdown on unlisted firms’ accounts fraud

Financial regulators pledged to enhance accounting oversight of non-listed big enterprises during its report to the National Policy Committee of the National Assembly on Tuesday.The policy is a development from an earlier movement by the Finance Services Commission and the Financial Supervisory Service to take stern punitive measures against stock manipulators.“Financial authorities will secure legal and systematic grounds to weed out fraudulent accounting practices,” said FSC chairman Shin Je-y

April 16, 2013

Shares end flat amid stimulus hopes

South Korean stocks closed almost unchanged Tuesday as hopes of the government’s stimulus measures pared down morning losses following overnight falls on Wall Street, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index added 1.76 points, or 0.09 percent, to finish at 1,922.21. Trading volume was moderate at 377.5 million shares worth 4.78 trillion won ($4.29 billion) with losers outnumbering gainers 464 to 350. The KOSPI fell to 1,896.

April 16, 2013

Seoul shares end flat amid stimulus hopes

South Korean stocks closed almost unchanged Tuesday as hopes of the government's stimulus measures pared down morning losses following overnight falls on Wall Street, analysts said. The local currency gained against the U.S. dollar.   The benchmark Korea Composite Stock Price Index (KOSPI) added 1.76 points, or 0.09 percent, to finish at 1,922.21. Trading volume was moderate at 377.5 million shares worth 4.78 trillion won (US$4.29 billion) with losers outnumbering gainers 464 to 350.  The KOSPI

April 16, 2013

KOSPI dives below 1,900 as economic worry grows over U.S. terror attack

South Korean stocks plunged 21.44 points, or 1.12 percent, on Tuesday morning, as economic worry was growing over the suspected terrorist attack in the United States and rising losses in techs and autos.   The benchmark Korea Composite Stock Price Index (KOSPI) fell to 1,899.40 as of 11:07 a.m. It marked the first time the index hovered below the 1,900 mark since November.   Tech blue chips lost ground, with market behemoth Samsung Electronics falling 1.05 percent and its smaller rival LG Electr

April 16, 2013

Woori Finance set to kick off process to select new head

Woori Finance Holdings Co., South Korea's top banking group, is likely to launch a committee next week to select a new head to replace Chairman Lee Pal-seung, officials said Monday.Chairman Lee offered to resign from the top post of the state-owned Woori Finance on Sunday, 11 months ahead of the official end of his term, as political pressure mounts.A seven-member committee to select a new chief is likely to be launched on Tuesday when a board meeting will be held, according to officials. A shar

April 15, 2013

Officials lock horns over lottery sales cap

Commissions of the Ministry of Strategy and Finance and the Prime Minister’s Office have been apparently locked in confrontations over the lottery sales cap imposed by the latter, according to industry sources on Monday.Last month, the Lottery Commission, which is under the wing of the Finance Ministry, asked the National Gaming Control Commission, a gambling regulator of the Prime Minister’s Office, for an elimination of the sales ceiling.The Lottery Commission suggested that lotteries do not p

April 15, 2013

POSCO completes car steel plate plant in China

POSCO, the nation’s top steelmaker, said Monday that it has completed an auto steel plate production plant in China as part of an effort to meet growing demand for the product from global carmakers. The high-end steel sheet plant in the city of Foshan, Guangdong province, will produce 450,000 tons of galvanized steel sheets annually, according to the company. Guangdong province is a large economic area with a population of more than 100 million. Major automakers such as GM, Toyota and Honda make

April 15, 2013

NPS to increase clout on chaebol

The National Pension Service is set to tighten its control on chaebol as the revised bill on the “10 percent rules” will likely pass through the plenary session of the National Assembly soon.The revised bill on the capital market involves financial authorities’ policy to allow the nation’s three major public funds to hold a 10 percent stake or more in a company ― as an exception from other stock investors.The bill, which recently worked through the National Policy Committee of the National Assem

April 15, 2013

Korea posts trade surplus for 14 straight months in March

SEJONG (Yonhap news) ― South Korea logged a trade surplus for 14 straight months in March despite the prolonged economic slump, customs data showed Monday.According to the customs-clearance trade figures provided by the Korea Customs Service, South Korea’s exports advanced 0.2 percent on-year to $47.4 billion last month. In contrast, imports shed 2 percent to $44.1 billion.The country’s March trade surplus came to $3.3 billion, expanding from $2 billion tallied a month earlier.The export growth

April 15, 2013